A $ 1.9 billion incentive package has just been passed. How to use the aid money

Many people’s budgets look very different during Covid.

Unemployment benefits and direct payments replaced salaries in the income ledger.

For many, the assistance is still not enough, and food and rental assistance as well as eviction protection were also needed to keep families going.

Fortunately, more of the relief is on the way now. President Joe Biden on Thursday signed a $ 1.9 billion stimulus package.

Here’s the tool you can see soon and how experts recommend that you use it best.

Unemployment benefits will be extended until September 6, with a federal boost of $ 300 above and beyond any government benefits. The average weekly government check is about $ 324.

Between the state benefit and the boost, the average laid-off worker will see that about 75% of their wages are replaced when they worked.

Experts recommend that you draw up a budget with your new income. You may need to cut expenses to make sure you can still pay your bills.

If you have cash left over if your basics are covered, then direct it to a savings account, said Kimberly Palmer, expert personal finance at NerdWallet.

“Many Americans have depleted their emergency funds during the pandemic, and can now begin to think about replenishing it,” Palmer said.

You are thankful that you did so when you are still unemployed when the benefits end or when an unexpected expense arises.

Keep your money in a savings account with a high return to get the best return on your cash. Also, make sure the account is FDIC insured, which means up to $ 250,000 of your deposit is protected from loss.

Once you have a savings pillow, use extra money (if any) to pay off high-interest credit card debt, said Kristen Holt, president and CEO of Greenpath Financial Wellness. You do not want to lose your money on interest payments if your budget is already tight.

But as scary as credit card debt can be, you need to make sure you pay it off without any savings.

“We would not recommend using cash resources you need to cover medicine and groceries and paying for a credit card, especially not if many money providers are still providing pandemic assistance,” Holt said. “Contact the bank [or] credit union to determine what assistance is still available, and to make sure the conditions are appropriate. ‘

Experts also say that it is dangerous to be dependent on your credit cards for emergencies, because banks can lower your limit at any time.

Full payments of $ 1,400 will be paid to those with adjusted gross income of up to $ 75,000 for individuals, $ 112,500 for housekeepers and $ 150,000 for married couples filing jointly.

As with previous incentive checks, payments are reduced for those with an income above the thresholds and are completely broken down for individuals earning $ 80,000 in income, household heads by $ 120,000 and couples by $ 160,000.

“Stimulus funds are a one-time cash introduction,” Holt said.

As such, she recommends directing this cash immediately to essential needs put on the burner, including medicine, groceries, or a car repair. Some people may only see the payments over the weekend.

In many areas there were already funds for rental assistance, and you can request the new assistance through one of these. In other cases, new programs will be created to pay out the money.

Tenants should contact local housing groups or their representatives or call their local 211/311 lines to identify programs and learn how to apply, said Emily Benfer, a visiting law professor at Wake Forest University.

The National Low Income Housing Coalition also has a database of rental assistance programs.

In the latest incentive package is also a pot of $ 10 billion money for homeowners who were left behind on their mortgage loans during the pandemic.

Some of the things you can use the money for: your mortgage, utilities, homeowners insurance or homeowners’ association fees.

“The legislation also contains a provision allowing the Department of the Treasury to determine other acceptable uses,” said Bob Broeksmit, president and CEO of the mortgage lending association.

The Treasury Department must distribute funds to state governments within 45 days. “Each state will then determine their process for loan applications and the distribution of funds,” Broeksmit said.

As with rental assistance, contact local housing groups or your representatives or call your local 211/311 lines to identify programs and learn how to request the money.

Benefits under SNAP, or the Supplemental Nutrition Assistance Program, can help you with your grocery bills and enable you to use other stimulus assistance for other urgent expenses.

The benefits were increased by 15% for all recipients until 30 September.

Under the new rules, an individual can receive up to $ 234 per month. A family of four can earn as much as $ 782 by September. In some countries, the maximum benefit is even higher. For example, a family of four in Hawaii could receive a monthly benefit of $ 1,440.

The money will be sent to you every month on an EBT card, which acts like a debit card. People usually get the money in less than 30 days, but those with little or no income can get their benefits within a week.

Eligible rules can be deceptive, but it does not hurt to apply.

Many people miss the benefit because they mistakenly assume they are ineligible or concerned about the stigma, Carrie R. Welton, director of policy at the advocacy group The Hope Center for College, Community and Justice, told last year CNBC said.

“People will bring their own shame on this, but these are taxpayer sources,” Welton said. “This pandemic is nobody’s to blame.”

Have you recently applied for rental assistance? Send me an email to [email protected] if you are willing to discuss your experience for a story